20130213
Short 1 NQ 2767.0, +2.0
Long 1 TF 916.6, -0.5
Long 1 NQ 2764.25, +2.0
Short 1 NQ 2767.5, -1.75
Short 1 NQ 2774.0, -1.5
Short 1 TF 918.1, -0.5
Short 1 NQ 2780.25, -0.75
Short 2 YM 13992, 13994, -6, -1
Short 2 TF 919.9, 919.8, -0.4, -0.5
Short 2 TF 919.9, 919.7, -0.2, -0.1
Long 1 TF 920.4, -0.7
Long 2 YM 13979, 13980, -3, -4
Total YM -14
Total NQ -0.0
Total TF -2.9
Another day of extreme bifurcation with the YM contract taking an unusual bear leadership role to boot. It's usually a bad bet to follow the YM to new highs or lows when such usual leaders like NQ and TF are pushing so persistently in the opposite direction. And if such leadership indicators are not variable within your trade plan, there is no reason to simply change your plan to suit your intuition about unusual market conditions. The point is that when your trade plan produces long strings of winning days, it should include a limit to your losses on days that it fails. You can cap the number of trades, the total maximum allowable losses, or even limit the number of losing trades in a row, all as a way to cut your trading off for the day. I also limit the number of losing days allowable in a row before I spend a day at simulated trades again. Today was the second losing day in a row for me, so tomorrow, I start the day on the simulator. If I can make 3 winning trades out of 5, I can turn the simulator off and go back to real trade mode. If unsuccessful to post net winning trades for the day, I use the simulator again on the day that follows until a series of winners can be established. If the market is going into a period where trade signals have become erratic or inconsistent, it's wise to keep your capital protected until things return to more normal conditions. The markets will always be there. Your capital may not....
